Kraken launched Bitcoin Vault, offering up to 2.5% annual BTC yield through integrated DeFi lending.
Kraken introduced Bitcoin Vault on May 27, a new product within its Kraken Earn suite that lets Bitcoin (BTC) holders earn passive yield without selling their holdings. Users do not need to interact directly with decentralized finance (DeFi) protocols to participate. The product is designed for long-term holders seeking returns on assets they already plan to keep.
Yields of up to 2.5% APY are available, paid in BTC and credited automatically to users' Kraken accounts. The product is powered by DeFi infrastructure firm Veda and operated by institutional DeFi firm Sentora. Assets are deployed across established on-chain lending protocols, including Aave, Morpho, and Tydro.
John Zettler, general manager of Payward Services and head of Kraken Earn Products, said the product reflects consistent customer demand. "Many Bitcoin holders on Kraken have made it clear they want simple, safe ways to earn on the Bitcoin they already plan to hold," Zettler said. "Bitcoin Vault is built for that mindset."
Veda and Sentora charge a 25% performance fee on rewards generated. The projected yield of up to 2.5% is stated after that fee is applied. The rate shown to users already reflects the deduction.
Kraken’s DeFi Earn Crosses $240M in Assets
Bitcoin Vault builds on Kraken's broader DeFi Earn product, which launched in January 2026. That product has since grown to more than $240 million in assets under management. Kraken attributed the growth to organic customer adoption rather than token incentives or promotional rates.
In crypto, vaults are pooled products that automatically allocate deposits across DeFi protocols to generate yield. They remove the need for users to manually move funds between lending, staking, or liquidity platforms. Bitcoin Vault packages those underlying strategies into a single product accessible from within the Kraken and Krak apps.
Withdrawals are available at any time but carry a five-day processing and return period. The launch follows a broader industry shift toward transparent on-chain yield infrastructure, which gained momentum after centralized crypto lending collapsed during the 2022 market downturn. Bitcoin Vault is now available in eligible jurisdictions through Kraken Earn.
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